Starting your own business in 16 steps

Introduction

Starting your own business is not only exciting, but there is also a lot involved. It's important to prepare well before you officially launch so that all the prerequisites are in place. From defining your offer to setting up your business administration, taking these 16 steps will get your business off to a flying start. Also read our article on "Starting your own business ideas" for more inspiration.

Step 1: Research what the market is for and what suits you

Starting your own business naturally begins with developing a product or service. It is very important to first research what the market needs. You can have such a great idea, if no one is waiting for it, it has no future. Therefore, first do some good market research: into your target market, the size of your target market, the needs of your target market and the ways in which your company can stand out from the competition.

Are you a true entrepreneur?

Another important starting point is yourself. Do you have genuine passion for the service or product you offer? Are you suited to entrepreneurship and the uncertainty that comes with it? Entrepreneurship is hard work, so always ask yourself: is this what I want to be doing more than full-time? If you want to gain more insight into yourself and your qualities, test your entrepreneurial skills.

Step 2: Create a financial plan

This step is not equally important for every business. It depends on the type of business you are starting. Copywriters or consultants can do their work just fine with just a laptop and phone. That requires little investment. If you are going to develop a physical product yourself, then it is probably necessary to find investors and start-up capital. Make a good financial plan that reflects how you plan to finance your business (for example, through private equity financing).

Step 3: Choose the right legal form

Choosing the right legal form for your business is very important. Will you go for a sole proprietorship or a limited liability company? Both options have advantages and disadvantages and depend on the type of business you want to start. If you make less than 150,000 euros in profit per year, a sole proprietorship is often the most advantageous option. But issues such as liability and the presence of partners in the new business are also important considerations. Therefore, list the pros and cons, think about the future and make the best choice for your business.

Step 4: Come up with a name for your business

Your product or service are known, your target market has been identified, and you know the industry in which your business will operate. Now it's a matter of choosing a business name that fits all those things perfectly. Not an easy job, and more important than you might think. Because an attractive company name can immediately generate interest among the target audience and ensure that your product or service sticks. Do you find it difficult to come up with a catchy company name?

Step 5: Conduct a competitive analysis

You have an idea for a product or service, but do you know who your competitors are? We therefore always advise beginning entrepreneurs to conduct a competitive analysis. In it you identify competitors and market trends. This helps you improve your own products and services, develop an effective marketing strategy and gives you a benchmark for your potential business growth. You can use this as input for your business plan.

Step 6: Write a business plan

Your idea stands and you have determined your legal form. Great! Then it is now time to write a business plan, which is going to ensure that you execute your plans successfully. Writing a business plan is not mandatory, but it will help you determine your focus. The better your preparation, the better your chances of a thriving business.

An outline of your business

Your business plan describes what your business will look like. It often includes a product or service description, your distinctiveness, the legal form, your positioning, market information, competition, a market sketch and target market. Financial backing is also essential. Need inspiration? Here are 14 examples of a business plan.

Step 7: Register with the Chamber of Commerce

Now that you have chosen a name and a legal form, it is time to officially start your own business and register with the Chamber of Commerce. This will cost you a one-time fee of 50 euros and you can easily make an appointment online. You do not have to register separately with the Tax Office; the Chamber of Commerce passes on your details itself. Once the Tax Office has listed you as a VAT entrepreneur, you will receive a sales tax number and a VAT identification number. The cost of registering with the Chamber of Commerce is a one-time fee of 75 euros.

Step 8: Make sure you meet all legal requirements

You have probably seen them on the television program "I am leaving". People who go abroad with a good idea and find out on the spot that you really need a baker's diploma to run a syrup waffle stall. You can run into these kinds of issues in the Netherlands as well. So map out whether you need to obtain certain diplomas or certificates to do your job. Does your business premises comply with the rules? Can you establish yourself in that location or is the zoning plan in the way? Ask your municipality for information so that you comply with all laws.

Step 9: Open a business account

For paying expenses and collecting invoices, we recommend opening a business account. A business account is not required by law for sole traders. However, the terms and conditions of most banks state that you cannot use a private account for business purposes. In addition, it looks more professional to customers and it is wise to separate your private and business cash flows. Also read our blog post on opening a business account. A business credit card is also practical.

Step 10: Arrange your insurance and retirement

Not the most exciting part of entrepreneurship, but important when starting your own business: make sure you are properly insured. Liability insurance, for example, is recommended, and you may also want to take out disability insurance. As an entrepreneur, you obviously provide for your own retirement, so get good advice on that too. Entrepreneurship is always a risk, but you can cover the biggest risks just fine.

Step 11: Set up orderly records

Another point that no entrepreneur gets excited about, but which is indispensable: setting up and maintaining your administration. First, make sure you have good terms and conditions so that it is clear to you and your client what your rights and obligations are. Arrange business bank accounts. And in addition, start working with the Tax Office's list of requirements for your business records. For example, the Inland Revenue requires that you include your invoices, cash book, contracts, time records, travel records, sales tax papers and business correspondence in your records. You can find more information about it here. It is also wise to prepare a balance sheet(annually) for your business. Do you expect to make less than €20,000 in sales per calendar year? Then the small entrepreneur scheme may be an interesting scheme for you.

Step 12: Make use of deductions

As a start-up and/or small business owner, you can take advantage of several deductions. Not all of these are automatically deducted from your profits. We therefore recommend proactively researching which deductions are of interest to you. Fortunately, we have written a blog post about deductions for entrepreneurs for you.

Step 13: Purchase business software

Starting a new business can be tricky in the beginning. Purchasing the right business software such as a CRM system can help you get off to a good start. In this, make an informed choice about which software you really need and also suits your business.

Step 14: Have a website created

A business cannot exist without a website. For one thing, your website is your company's business card. Potential customers usually visit your website before they engage with you. In addition, your website can be a great acquisition channel. Millions of times a day, people are searching Google for services or products. With a good online marketing strategy, you can get a piece of that too. So read our blog post on creating a website.

Step 15: Getting started with marketing and sales

All the conditions to successfully start your own business are in place. Now it is time to really get started. The main goal: acquire customers. Together with an expert, develop a good website, determine your marketing and sales strategy and your brand strategy, and set up a strong (online) marketing campaign. The first concrete steps towards a growing customer base.

Step 16: Networking

If you want to start your own business, chances are you don't yet have a network in the industry. Try to build relationships with other entrepreneurs, suppliers and potential partners as early as possible. Start low-key, send a LinkedIn connection request, email or respond to a blog post. Show genuine interest in these parties and your network will naturally grow. These relationships can become a major reason why your business will become successful.

If you are interested in starting your own webshop or what the costs are for starting your own business, feel free to read on. In addition, consider making a corporate video to reach your target audience.